Company Registration No. SC453182 (Scotland)
DOCS24 Ltd
Financial statements
for the year ended 31 December 2019
Pages for filing with the Registrar
DOCS24 Ltd
Company information
Directors
Ian Paterson-Brown
James Rae
Company number
SC453182
Registered office
20-22 Torphichen Street
Edinburgh
EH3 8JB
Independent auditor
Saffery Champness LLP
Edinburgh Quay
133 Fountainbridge
Edinburgh
EH3 9BA
Bankers
The Royal Bank of Scotland plc
142-144 Princes Street
Edinburgh
EH2 4EQ
Barclays Bank plc
1 St Andrew Square
Edinburgh
EH2 2BD
DOCS24 Ltd
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 11
DOCS24 Ltd
Statement of financial position
As at 31 December 2019
31 December 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
4
276,540
234,029
Tangible assets
5
1,847
3,210
Investments
6
1
1
278,388
237,240
Current assets
Debtors
8
311,770
137,988
Cash at bank and in hand
180,168
105,997
491,938
243,985
Creditors: amounts falling due within one year
9
(208,980)
(107,553)
Net current assets
282,958
136,432
Total assets less current liabilities
561,346
373,672
Creditors: amounts falling due after more than one year
10
(131,945)
-
Net assets
429,401
373,672
Capital and reserves
Called up share capital
11
1,053
1,016
Share premium account
459,229
310,145
Profit and loss reserves
(30,881)
62,511
Total equity
429,401
373,672
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
DOCS24 Ltd
Statement of financial position (continued)
As at 31 December 2019
31 December 2019
Page 2
The financial statements were approved by the board of directors and authorised for issue on 11 May 2020 and are signed on its behalf by:
James Rae
Director
Company Registration No. SC453182
DOCS24 Ltd
Notes to the financial statements
For the year ended 31 December 2019
Page 3
1
Accounting policies
Company information
DOCS24 Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
20-22 Torphichen Street, Edinburgh, EH3 8JB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Reporting period
These financial statements represent the year from 1 January 2019 to 31 December 2019. The prior period represents a period from 1 July 2018 to 31 December 2018. The comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 4
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
25% straight line
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20% reducing balance
Computer equipment
33.33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 5
1.8
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
1.11
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 6
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 7
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 6 (2018 - 5).
3
Directors' remuneration
2019
2018
£
£
Remuneration paid to directors
77,320
34,694
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2018 - 1).
Directors' remuneration of £52,379 (period ended December 2018 - £22,551) was capitalised as software development expenditure during the period.
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
Page 8
4
Intangible fixed assets
Software
£
Cost
At 1 January 2019
511,215
Additions
227,086
At 31 December 2019
738,301
Amortisation and impairment
At 1 January 2019
277,186
Amortisation charged for the year
184,575
At 31 December 2019
461,761
Carrying amount
At 31 December 2019
276,540
At 31 December 2018
234,029
5
Tangible fixed assets
Fixtures & fittings
Computer equipment
Total
£
£
£
Cost
At 1 January 2019
2,860
2,415
5,275
Disposals
(1,000)
-
(1,000)
At 31 December 2019
1,860
2,415
4,275
Depreciation and impairment
At 1 January 2019
858
1,207
2,065
Depreciation charged in the year
260
403
663
Eliminated in respect of disposals
(300)
-
(300)
At 31 December 2019
818
1,610
2,428
Carrying amount
At 31 December 2019
1,042
805
1,847
At 31 December 2018
2,002
1,208
3,210
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
Page 9
6
Fixed asset investments
2019
2018
£
£
Investment in subsidiary
1
1
7
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
DOCS24 LLC
USA
Document management
Ordinary
100.00
0
The unaudited aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves*
£
£
DOCS24 LLC
(106,287)
67,196
*Includes loan capital (note 8)
8
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
39,046
13,044
Corporation tax recoverable
66,361
35,641
Amounts owed by group undertakings
189,946
78,884
Other debtors
3,433
-
Prepayments and accrued income
12,984
10,419
311,770
137,988
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
Page 10
9
Creditors: amounts falling due within one year
2019
2018
£
£
Finance lease obligations
83,333
-
Trade creditors
33,280
14,923
Other taxation and social security
7,527
5,399
Other creditors
10,445
16,410
Accruals and deferred income
74,395
70,821
208,980
107,553
10
Creditors: amounts falling due after more than one year
2019
2018
£
£
Finance lease obligations
131,945
-
11
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,053 (2018: 1,016) Ordinary shares of £1 each
1,053
1,016
During the year the company issued 37 Ordinary shares of £1 with a total premium of £149,084.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Kenneth McDowell.
The auditor was Saffery Champness LLP.
DOCS24 Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2019
Page 11
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
103,950
-
14
Directors' transactions
The balance due to the directors of £65,064, is included within other creditors and is repayable on demand. Interest was charged on the original loan amount.
15
Post balance sheet events and going concern
Subsequent to the year end, the company, like industry throughout the UK, has been significantly affected by the COVID 19 pandemic.
During March 2020, in accordance with Government advice, the company closed its offices and reduced operations significantly.
In April 2020, the company entered the Coronavirus Job Retention Scheme for government support for eligible employees and sought and secured a Coronavirus Business Interruption Loan Scheme (CBILS) which the directors considered necessary for ongoing activities of the company. This facility required the company to grant a bond and floating charge over the company’s assets.
At the date of approval, the directors have prepared and approved up to date management accounts, budgets and cash flow projections which include the utilisation of the CBIL funding, the timely settlement of HMRC claims and trade debtors and ongoing support from directors and shareholders that the directors consider reasonable and prudent.
Having considered the matters above the directors are of the view that, at the date of approval of the financial statements, the company will have sufficient resources to continue to operate and meet debts as they fall due for the foreseeable future. The financial statements have therefore be drawn up on a going concern basis.
2019-12-31
2019-01-01
false
11 May 2020
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
This audit opinion is unqualified
Ian Paterson-Brown
James Rae
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